India has abstained from voting at the International Monetary Fund (IMF) Board Meeting, which considered a fresh bailout package for Pakistan. India also raised concerns over the efficacy of IMF programs in the case of Pakistan, given its poor track record, and also on the possibility of misuse of debt financing funds for state-sponsored cross-border terrorism.
The IMF reviewed the Extended Fund Facility lending program of one billion dollars and also considered a fresh Resilience and Sustainability Facility lending program of 1.3 billion dollars for Pakistan yesterday.
In its statement at the meeting, India pointed out that rewarding continued sponsorship of cross-border terrorism sends a dangerous message to the global community, exposes funding agencies and donors to reputational risks, and makes a mockery of global values.
Pakistan has been a prolonged borrower from the IMF, with a very poor track record of implementation and of adherence to the IMF’s program conditions. In the last five years, since 2019, there have been 4 IMF programs. India stated that Pakistan would not have approached the Fund for yet another bailout program if the previous programs had succeeded in putting in place a sound macroeconomic policy environment.
India questioned the effectiveness of the IMF program designs in the case of Pakistan and their monitoring or their implementation by Pakistan. The IMF took note of India’s statement and its abstention from the vote.
